Neuren Pharmaceuticals (ASX:NEU) share price rockets 100% on study results

Why are investors so excited about Neuren Pharmaceuticals today?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is soaring to yearly highs on the back of positive phase three clinical trial results.

Shares are currently swapping hands at $3.40 apiece, up exactly 100% from yesterday's close.

Let's investigate what triggered the major boost for the drug therapy company today.

three excited doctors with hands in the air

Image source: Getty Images

Why did Neuren announce?

Neuren reported positive results from phase three trials into the use of trofinetide to treat young women with Rett syndrome. Trofinetide has been granted fast-track status and orphan drug designation for Rett syndrome.

Acadia Pharmaceuticals (NASDAQ: ACAD) is conducting and funding the trials, but Neuren is eligible to receive milestone payments of up to US$455 million (AU$645 million). Neuren is also eligible for royalties on trofinetide sales if the drug is approved by the FDA.

Acadia is planning to meet with the FDA for a new drug application in the middle of 2022.

Neuren predicts it would earn AU$111 million in revenue over 2022 and 2023 for Rett syndrome, plus double-digit percentage royalties on net sales if trofinetide is approved and launched in the US.

Rett syndrome is a rare genetic mutation affecting brain development, primarily in girls.

What did management say?

Commenting on the news driving the Neuren Pharmaceuticals share price today, CEO Jon Pilcher said:

We are delighted with these robustly positive results and are now eager to see trofinetide progress through the regulatory approval process.

We are very grateful to the Rett syndrome community — the patients, their caregivers, study site personnel, physicians and everyone who participated in the Lavender study, as well as in Neuren's two Phase 2 studies that paved the way.

Neuren Pharmaceuticals share price snapshot

The Neuren Pharmaceuticals share price has skyrocketed 164% this year to date. It has also gained 170% over the past 12 months.

Earlier today, the share price reached $3.56, a yearly high. The yearly low is $1.18.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Five healthcare workers standing together and smiling.
Healthcare Shares

3 ASX 200 healthcare shares to buy amid sector rout

The experts are backing these stocks for price growth.

Read more »

Researchers and doctors with futuristic 3D hologram overlay for body anatomy or DNA in hospital clinic.
Healthcare Shares

Are investors taking a big gamble chasing 4DX shares higher and higher?

Investor interest in this ASX healthcare tech stock is booming.

Read more »

A group of people in a corporate setting do a collective high five.
Broker Notes

3 reasons to buy Ramsay Health Care shares today

A leading analyst expects Ramsay Health Care shares to keep outperforming in the months ahead.

Read more »

Half a man's face from the nose up peers over a table.
Healthcare Shares

If I could buy only 1 ASX 200 share right now, it would be…

This stock looks underpriced and oversold to me.

Read more »

woman testing substance in laboratory dish, csl share price
Healthcare Shares

CSL shares slide again in March — but is a comeback brewing?

Brokers remain upbeat and see upside up to 95% for the biotech stock.

Read more »

A female athlete in green spandex leaps from one cliff edge to another representing 3 ASX shares that are destined to rise and be great
Broker Notes

Up 57% since February, why Telix shares could keep leaping higher in 2026

A leading analyst believes investors are undervaluing Telix shares. But why?

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Healthcare Shares

Is it time to get greedy with CSL shares?

This ASX healthcare giant is out of favour, but that may be where opportunity starts.

Read more »

Stressed, unhappy, and tired scientist with a headache working on a computer in a lab.
Healthcare Shares

3 ASX 200 healthcare shares at multi-year lows

Does this present a buying opportunity?

Read more »